H-0258.3

HOUSE BILL 1304

ByRepresentatives Hackney, Berry, Fitzgibbon, Chopp, Macri, Bergquist, and Pollet

AN ACT Relating to grade-separated transportation; amending RCW 35.95A.010, 35.95A.020, 35.95A.030, 35.95A.050, 35.95A.060, 35.95A.070, 35.95A.080, 35.95A.110, 35.95A.120, and 35.95A.140; and adding new sections to chapter 35.95A RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 35.95A.010 and 2002 c 248 s 1 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Affordable housing" means long-term housing for persons, families, or unrelated persons living together whose adjusted income is at or below 60 percent of the median income, adjusted for household size, for the county where the housing is located.

(2) "Authority" means a city transportation authority created pursuant to chapter 248, Laws of 2002.

(((2)))(3) "Authority area" means the territory within a city as designated in the ordinance creating the authority.

(((3)))(4) "Bonds" means bonds, notes, or other evidences of indebtedness.

(((4)))(5) "Low-income" means household income set by the authority creating the rebate program that is at or below 75 percent of the median household income, adjusted for household size, for the authority in which the taxes or fees were imposed.

(6) "Public ((monorail))grade-separated transportation function" means the transportation of passengers and their incidental baggage by means of public ((monorail))grade-separated transportation facilities as authorized in this chapter.

(((5)))(7) "Public ((monorail))grade-separated transportation facilities" means a ((transportation system))light, heavy, or rapid rail facility, monorail, inclined plane, funicular, trolley, or other fixed rail guideway component of a transportation system operating principally on exclusive rights-of-way that is not regulated by the federal railroad administration or its successor that utilizes train cars running on a guideway, together with the necessary passenger stations, terminals, parking facilities, related facilities, any lands, interest in land, or air rights over lands, or other properties, and facilities necessary and appropriate for passenger and vehicular access to and from people-moving systems((, not including fixed guideway light rail systems)). "Public grade-separated transportation facilities" does not mean elevators, moving sidewalks or stairs, and/or vehicles suspended from aerial cables, unless they are an integral component of a station served by public grade-separated transportation facilities; nor does it include facilities that are not public transportation, such as tourist services that are only accessible via private property, or other services not accessible to the general public.

(((6)))(8) "Qualified elector" means any person registered to vote within the city boundaries.

Sec. 2. RCW 35.95A.020 and 2002 c 248 s 2 are each amended to read as follows:

(1) A city transportation authority to perform a public ((monorail))grade-separated transportation function may be created in every city with a population greater than ((three hundred thousand))500,000 to perform a public ((monorail))grade-separated transportation function. The authority shall embrace all the territory in the authority area. A city transportation authority is a municipal corporation, an independent taxing "authority" within the meaning of Article 7, section 1 of the state Constitution, and a "taxing district" within the meaning of Article 7, section 2 of the state Constitution.

(2) Any city transportation authority and proposed taxes established pursuant to this chapter, either by ordinance or petition as provided in this chapter, must be approved by a majority vote of the electors residing within the proposed authority area voting at a regular or special election.

Sec. 3. RCW 35.95A.030 and 2002 c 248 s 3 are each amended to read as follows:

(1) A city that undertakes to propose creation of an authority must propose the authority by ordinance of the city legislative body. The ordinance must:

(a) Propose the authority area ((and the size and method of selection of the governing body of the authority, which governing body may be appointed or elected, provided that officers or employees of any single city government body may not compose a majority of the members of the authority's governing body)), which authority area may encompass the entire city or a portion thereof;

(b) Propose whether all or a specified portion of the public ((monorail))grade-separated transportation function will be exercised by the authority; and

(c) Propose an initial array of taxes to be voted upon by the electors within the proposed authority area((; and

(d) Provide for an interim governing body of the authority which will govern the authority upon voter approval of formation of the authority, until a permanent governing body is selected, but in no event longer than fourteen months)).

(2) An authority may also be proposed to be created by a petition setting forth the matters described in subsection (1) of this section, and signed by one percent of the qualified electors of the proposed authority area.

(3) Upon approval by the qualified electors of the formation of the city transportation authority and any proposed taxes, either by ordinance or by petition as provided in this chapter, the governing body of an authority((, or interim governing body, as applicable,)) will adopt bylaws determining, among other things, the authority's officers and the method of their selection, and other matters the governing body deems appropriate.

Sec. 4. RCW 35.95A.050 and 2020 c 274 s 16 are each amended to read as follows:

Every authority has the following powers:

(1) To acquire by purchase, condemnation, gift, or grant and to lease, construct, add to, improve, replace, repair, maintain, operate, and regulate the use of public ((monorail))grade-separated transportation facilities, including passenger terminal and parking facilities and properties, and other facilities and properties as may be necessary for passenger and vehicular access to and from public ((monorail))grade-separated transportation facilities, together with all lands, rights-of-way, and property within or outside the authority area, and together with equipment and accessories necessary or appropriate for these facilities, except that property, including but not limited to other types of public transportation facilities, that is owned by any city, county, county transportation authority, public transportation benefit area, metropolitan municipal corporation, or regional transit authority may be acquired or used by an authority only with the consent of the public entity owning the property. The entities are authorized to convey or lease property to an authority or to contract for their joint use on terms fixed by agreement between the entity and the authority;

(2) To fix rates, tolls, fares, and charges for the use of facilities and to establish various routes and classes of service. Rates, tolls, fares, or charges may be adjusted or eliminated for any distinguishable class of users including, but not limited to, senior citizens and persons with disabilities;

(3) To contract with the United States or any of its agencies, any state or any of its agencies, any public transportation benefit district, county transportation authority, regional transit authority, any metropolitan municipal corporation, and other country, city, other political subdivision or governmental instrumentality, or governmental agency, or any private person, firm, or corporation for ((the)): (a) The purpose of receiving any gifts or grants or securing loans or advances for preliminary planning and feasibility studies((, or for)); (b) the design, construction, operation, or maintenance of public ((monorail))grade-separated transportation facilities ((as follows:

(j) Contracts for the construction of facilities, other than contracts for facilities to be provided by the selected vendor, with an estimated cost greater than two hundred thousand dollars must be awarded after a competitive bid process consistent with chapter 39.04 RCW or awarded through an alternative public works contracting procedure consistent with chapter 39.10 RCW)); or (c) the provision or receipt of services, facilities, or property rights to provide revenues for the system. An authority shall have the power to contract pursuant to RCW 39.33.050. Before any contract is entered with any private person, firm, or corporation, competitive bids shall first be called upon such notice, bidder qualifications, and bid conditions as the board shall determine. This shall allow use of negotiated procurements. For the avoidance of doubt, the provisions of chapters 39.12 and 39.19 RCW apply to a contract entered into under this section as if the public transportation systems and facilities were owned by a public body regardless of the use of a negotiated procurement method;

(4) To contract with the United States or any of its agencies, any state or any of its agencies, any metropolitan municipal corporation, any other county, city, regional transit authority, other political subdivision or governmental instrumentality, any governmental agency, or any private person, firm, or corporation for the use by either contracting party of all or any part of the facilities, structures, lands, interests in lands, air rights over lands, and rights-of-way of all kinds which are owned, leased, or held by the other party ((and)); or for the purpose of planning, designing, constructing, operating any public transportation facility, or performing any service related to transportation which the authority is authorized to operate or perform, on terms as may be agreed upon by the contracting parties;

(5) To acquire any existing public transportation facility by conveyance, sale, or lease. In any acquisition from a county, city, regional transit authority, or other political subdivision of the state, the authority will receive credit from the county or city or regional transit authority or other political subdivision for any federal assistance and state matching assistance used by the county or city or regional transit authority or other political subdivision in acquiring any portion of the public transportation facility. Upon acquisition, the authority must assume and observe all existing labor contracts relating to the public transportation facility and, to the extent necessary for operation of the public transportation facility, all of the employees of the public transportation facility whose duties are necessary to efficiently operate the public transportation facility must be appointed to comparable positions to those which they held at the time of the transfer, and no employee or retired or pensioned employee of the public transportation facility will be placed in any worse position with respect to pension seniority, wages, sick leave, vacation, or other benefits than he or she enjoyed as an employee of the public transportation facility prior to the acquisition. Furthermore, the authority must engage in collective bargaining with the duly appointed representatives of any employee labor organization having existing contracts with the acquired facility and may enter into labor contracts with the employee labor organization;

(6) To ((contract for, participate in, and support research, demonstration, testing, and development of public monorail transportation facilities, equipment, and use incentives, and have all powers necessary to comply with any criteria, standards, and regulations which may be adopted under state and federal law, and to take all actions necessary to meet the requirements of those laws. The authority has, in addition to these powers, the authority to)) prepare, adopt, and carry out a comprehensive public ((monorail))grade-separated system plan and financing plan and to make other plans and studies and to perform programs as the authority deems necessary to implement and comply with those laws. To the extent that new public grade-separated transportation corridors are planned, financing and system plans shall take into account (a) 30-year projected ridership, (b) the number of income-restricted affordable housing units within a 15-minute walking radius of stations, and (c) the number of transit-dependent households within a 15-minute walking radius of stations. On at least an annual basis throughout the planning process for each corridor, the authority shall consider and report the anticipated ridership, the number of income-restricted affordable housing units within a 15-minute walking radius of stations, and the number of transit-dependent households within a 15-minute walking radius of stations for each studied alternative within each corridor. The reports shall be continuously posted on the authority's website from the release of reports until the dissolution of the authority;

(7) To establish local improvement districts within the authority area to finance public ((monorail))grade-separated transportation facilities, to levy special assessments on property specially benefited by those facilities, and to issue local improvement bonds to be repaid by the collection of local improvement assessments. The method of establishment, levying, collection, enforcement, and all other matters relating to the local improvement districts, assessments, collection, and bonds are as provided in the statutes governing local improvement districts of cities and towns. The duties devolving upon the city treasurer in those statutes are imposed on the treasurer of the authority;

(8) To exercise all other powers necessary and appropriate to carry out its responsibilities, including without limitation the power to sue and be sued, to own, construct, purchase, lease, add to, and maintain any real and personal property or property rights necessary for the conduct of the affairs of the authority, to enter into contracts, and to employ the persons as the authority deems appropriate. An authority may also sell, lease, convey, or otherwise dispose of any real or personal property no longer necessary for the conduct of the affairs of the authority;

(16) To dispose of any real or personal property acquired in connection with any authority function and that is no longer required for the purposes of the authority, in the same manner as provided for cities of the first class. When an authority determines that a facility or any part thereof that has been acquired from any public agency without compensation is no longer required for authority purposes, but is required by the agency from which it was acquired, the authority shall by resolution transfer it to such agency.

Sec. 5. RCW 35.95A.060 and 2002 c 248 s 6 are each amended to read as follows:

Each authority will establish necessary and appropriate funds and accounts consistent with the uniform system of accounts developed pursuant to RCW 43.09.210. The authority ((may designate a treasurer or may))shall contract with any city with territory within the authority area for treasury and other financial functions. The city must be reimbursed for the expenses of treasury services. However, no city whose treasurer serves as treasurer of an authority is liable for the obligations of the authority.

Sec. 6. RCW 35.95A.070 and 2002 c 248 s 8 are each amended to read as follows:

Every authority has the power to:

(1) Levy excess levies upon the property included within the authority area, in the manner prescribed by Article VII, section 2 of the state Constitution and by RCW 84.52.052 for operating funds, capital outlay funds, and cumulative reserve funds;

(2) Issue general obligation bonds, not to exceed an amount, together with any outstanding nonvoter-approved general obligation indebtedness equal to one and one-half percent of the value of the taxable property within the authority area, as the term "value of the taxable property" is defined in RCW 39.36.015. An authority may additionally issue general obligation bonds, together with outstanding voter-approved and nonvoter-approved general obligation indebtedness, equal to two and one-half percent of the value of the taxable property within the authority area, as the term "value of the taxable property" is defined in RCW 39.36.015, when the bonds are approved by three-fifths of the qualified electors of the authority at a general or special election called for that purpose and may provide for the retirement thereof by levies in excess of dollar rate limitations in accordance with the provisions of RCW 84.52.056. These elections will be held as provided in RCW 39.36.050;

(3) Issue revenue bonds payable from any revenues other than taxes levied by the authority, and to pledge those revenues for the repayment of the bonds. Proceeds of revenue bonds may only be expended for the costs of public ((monorail))grade-separated transportation facilities, for financing costs, and for capitalized interest during construction plus six months thereafter. The bonds and warrants will be issued and sold in accordance with chapter 39.46 RCW.

No bonds issued by an authority are obligations of any city, county, or the state of Washington or any political subdivision thereof other than the authority, and the bonds will so state, unless the legislative authority of any city or county or the legislature expressly authorizes particular bonds to be either guaranteed by or obligations of its respective city or county or of the state.

Sec. 7. RCW 35.95A.080 and 2002 c 248 s 9 are each amended to read as follows:

(1) Every authority has the power to levy and collect a special excise tax not exceeding two and one-half percent on the value of every motor vehicle owned by a resident of the authority area for the privilege of using a motor vehicle. Before utilization of any excise tax money collected under this section for acquisition of right-of-way or construction of a public ((monorail))grade-separated transportation facility on a separate right-of-way, the authority must adopt rules affording the public an opportunity for ((corridor))a public hearing((s and design public hearings, which provide in detail the procedures necessary for public participation in the following instances: (a) Prior to adoption of location and design plans having a substantial social, economic, or environmental effect upon the locality upon which they are to be constructed; or (b) on the public transportation facilities operating on a separate right-of-way whenever a substantial change is proposed relating to location or design in the adopted plan))to include public comment. In adopting such rules the authority must adhere to the provisions of the administrative procedure act.

(2) ((A "corridor public hearing" is a public hearing that: (a) Is held before the authority is committed to a specific route proposal for the public transportation facility, and before a route location is established; (b) is held to afford an opportunity for participation by those interested in the determination of the need for, and the location of, the public transportation facility; and (c) provides a public forum that affords a full opportunity for presenting views on the public transportation facility route location, and the social, economic, and environmental effects on that location and alternate locations. However, the hearing is not deemed to be necessary before adoption of a transportation plan as provided in section 7 of this act or a vote of the qualified electors under subsection (5) of this section.

(4))) An authority imposing a tax under subsection (1) of this section may also impose a sales and use tax, in addition to any tax authorized by RCW 82.14.030, upon retail car rentals within the city that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax must not exceed 1.944 percent of the base of the tax. The base of the tax will be the selling price in the case of a sales tax or the rental value of the vehicle used in the case of a use tax. The revenue collected under this subsection will be distributed in the same manner as sales and use taxes under chapter 82.14 RCW.

(((5)))(3) Before any authority may impose any of the taxes authorized under this section, the authorization for imposition of the taxes must be approved by the qualified electors of the authority area.

Sec. 8. RCW 35.95A.110 and 2002 c 248 s 12 are each amended to read as follows:

All taxes and fees levied and collected by an authority must be used solely for the purpose of paying all or any part of the cost of acquiring, designing, constructing, equipping, maintaining, or operating public ((monorail))grade-separated transportation facilities or contracting for the services thereof, or to pay or secure the payment of all or part of the principal of or interest on any general obligation bonds or revenue bonds issued for authority purposes. Until expended, money accumulated in the funds and accounts of an authority may be invested in the manner authorized by the governing body of the authority, consistent with state law.

If any of the revenue from any tax or fee authorized to be levied by an authority has been pledged by the authority to secure the payment of any bonds as herein authorized, then as long as that pledge is in effect the legislature will not withdraw from the authority the authorization to levy and collect the tax or fee.

Sec. 9. RCW 35.95A.120 and 2007 c 516 s 12 are each amended to read as follows:

(1) ((Except as provided in subsection (2) of this section, the city transportation authority may be dissolved by a vote of the people residing within the boundaries of the authority if the authority is faced with significant financial problems. However, the authority may covenant with holders of its bonds that it may not be dissolved and shall continue to exist solely for the purpose of continuing to levy and collect any taxes or assessments levied by it and pledged to the repayment of debt and to take other actions, including the appointment of a trustee, as necessary to allow it to repay any remaining debt. No such debt may be incurred by the authority on a project until thirty days after a final environmental impact statement on that project has been issued as required by chapter 43.21C RCW. The amount of the authority's initial bond issue is limited to the amount of the project costs in the subsequent two years as documented by a certified engineer or by submitted bids, plus any reimbursable capital expenses already incurred at the time of the bond issue. The authority may size the first bond issue consistent with the internal revenue service five-year spend down schedule if an independent financial advisor recommends such an approach is financially advisable. Any referendum petition to dissolve the city transportation authority must be filed with the city council and contain provisions for dissolution of the authority. Within seven days, the city prosecutor must review the validity of the petition and submit its report to the petitioner and city council. If the petitioner's claims are deemed valid by the city prosecutor, within ten days of the petitioner's filing, the city council will confer with the petitioner concerning the form and style of the petition, issue an identification number for the petition, and write a ballot title for the measure. The ballot title must be posed as a question and an affirmative vote on the measure results in authority retention and a negative vote on the measure results in the authority's dissolution. The petitioner will be notified of the identification number and ballot title within this ten-day period.

(4)))Within 30 days of the completion of the construction of the public grade-separated transportation facilities or series of public grade-separated transportation facilities authorized by an authority area, the authority shall reduce day-to-day operations and exist solely as a limited entity that:

(3) The governing body of the authority may transfer any net assets to one or more other political subdivisions with instructions as to their use or disposition. The governing body shall authorize this transfer ((in the))by resolution ((that dissolves and terminates the authority under subsection (2)(d) of this section)).

(((5)))(4) Upon the dissolution and termination of the authority, the former officers, directors, employees, and agents of the authority shall be immune from personal liability in connection with any claims brought against them arising from or relating to ((their service))acts or omissions while performing or in good faith purporting to perform their official duties to the authority, and any claim brought against any of them is barred.

(((6) Upon satisfaction of the conditions set forth in subsection (2)(a) and (b) of this section, the terms of all members of the governing body of the city transportation authority, whether elected or appointed, who are serving as of the date of the adoption of the resolution described in subsection (2)(b) of this section, shall be extended, and incumbent governing body members shall remain in office until dissolution of the authority, notwithstanding any provision of any law to the contrary.))

Sec. 10. RCW 35.95A.140 and 2005 c 19 s 2 are each amended to read as follows:

Each authority shall incorporate in plans for stations along any ((monorail))grade-separated project signing that is easily understood by the traveling public, including, but not limited to, persons with disabilities, non-English-speaking persons, and visitors from other nations. The signage must employ graphics consistent with international symbols for transportation facilities and signage that are consistent with department of transportation guidelines and programs. The signage must also use distinguishing pictograms as a means to identify stations and points of interest along the ((monorail))grade-separated corridor for persons who use languages that are not Roman-alphabet based. These requirements are intended to apply to new sign installation and not to existing signs. The authority may replace existing signs as it chooses; however, it shall use the new signing designs when existing signs are replaced. All signage must comply with requirements of applicable federal law and may include recommendations contained in federal publications providing directions on way-finding for persons with disabilities.

NEW SECTION.  Sec. 11. A new section is added to chapter 35.95A RCW to read as follows:

(1) An authority that imposes a special excise tax under RCW 35.95A.080 or a vehicle license fee under RCW 35.95A.090, may establish a rebate program for the purposes of providing rebates of up to 40 percent of the actual tax or fee paid by a low-income individual.

(2) Funds collected from a special excise tax under RCW 35.95A.080 or a vehicle license fee under RCW 35.95A.090 may be used for a rebate program established under this section.

(3) An authority that establishes a rebate program is responsible for the development and administration of the program and all functions and costs associated with the rebate program.

(4) An authority that establishes a rebate program under this section must report back to the legislature two years after the program takes effect. The report must include, but is not limited to, a detailed description of the structure of the program, the average rebate, the total amount of rebates issued, and the number of people that received rebates.

NEW SECTION.  Sec. 12. A new section is added to chapter 35.95A RCW to read as follows:

(1) An authority shall create a system plan to implement an equitable transit-oriented development strategy for diverse, vibrant, mixed-use, and mixed-income communities consistent with transit-oriented development plans developed with community input by any regional transportation planning organization or regional transit authority within or encompassing the authority area. This system plan must include the following:

(a) A requirement that when an authority disposes or transfers any surplus property, a minimum of 80 percent of the surplus property to be disposed or transferred, including air rights, that is suitable for development as housing, must be offered for either transfer at no cost, sale, or long-term lease first to qualified entities that agree to develop affordable housing on the property, consistent with local land use and zoning laws:

(i) If a qualified entity receives surplus property from an authority after being offered the property as provided in (a) of this subsection, the authority must require a minimum of 80 percent of the housing units constructed on property obtained under this subsection to be dedicated to affordable housing.

(ii) If a qualified entity sells property or development rights obtained through this subsection, it must use the proceeds from the sale to construct only affordable housing units within one-half miles of the location of the original property;

(b) A requirement that the authority must work in good faith to implement all requirements of this section, but is not required to comply with a requirement imposed by (a)(i) or (ii) of this subsection if the requirement is in conflict, as determined by the relevant federal agency, with provisions of the applicable federal transit administration master grant agreement, federal transit administration full funding grant agreement with the city transportation authority, or the equivalent federal railroad administration agreement necessary to establish or maintain eligibility for a federal grant program;

(c) A requirement that (a) of this subsection does not apply to property to be transferred to governments or third parties in order to facilitate permitting, construction, or mitigation of high capacity transportation facilities and services.

(2) A city transportation authority implementing subsection (1)(a) of this section must, at the end of each fiscal quarter, send a report to the appropriate committees of the legislature and post a report on its website detailing the following activities:

(a) Any transfers of property that have occurred in the previous fiscal quarter pursuant to subsection (1)(a) of this section; and

(b) Any progress in implementing any regional equitable transit-oriented development strategy for diverse, vibrant, mixed-use, and mixed-income communities approved by the voters pursuant to this section.

NEW SECTION.  Sec. 13. A new section is added to chapter 35.95A RCW to read as follows:

As a condition of receiving state funding, a city transportation authority shall submit a maintenance and preservation management plan for certification by the state department of transportation. The plan must inventory all transportation system assets within the direction and control of the city transportation authority, and provide a plan for preservation of assets based on lowest life-cycle cost methodologies.

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